GIFP BUSINESS PARK

The Business Park of Giurgiulesti International Free Port provides investors an excellent location on the border with the European Union, in a low cost environment, with tri-modal transport infrastructure and a unique tax and customs framework.

Investors can set up their businesses within the business park by leasing land, offices, warehouses or open storage facilities. In addition, Danube Logistics SRL offers potential investors associated services ranging from logistics to various support and administrative services.

Investor Questionnaire

Inexpensive, Multi-lingual Labor Force

Moldova has a population of 3.6 million (2016). Out of that total, 70% of the population is multi-lingual, and 80% attain secondary education. The average monthly wage is about USD 370/EUR 300.

Proximity to EU, CIS and Turkish Markets

From Moldova exporters can easily reach EU single market with 508 million consumers, the CIS + Ukraine market with 282 million consumers as well as the Turkish market with 80 million consumers.

Fast Growing Emerging Market
In 2017 the Republic of Moldova achieved an economic growth of 4.5%, agricultural production increased by  8.6% and industrial production increased by 4.2% (change 12 months!!!).

Free Trade Regimes

Since 2001 the Republic of Moldova is a full-right member of the WTO. In addition Moldova has signed Free Trade Agreements with 43 countries: EU-28 member states (DCFTA), CIS member-states, Members of Central European Free Trade Agreement and Turkey. Furthermore Moldova benefits from preferential trade agreements with Norway, Canada, Switzerland, Japan and USA.

Investment Opportunities

There are numerous investment opportunities in the agriculture, manufacturing and logistics sectors.

Agriculture and Food Processing
Moldova possesses over 2.5 million hectares of highly fertile agricultural land and sufficient water resources. This, together with the favorable climatic conditions and the predominantly well-educated and inexpensive work force, as well as the free trade regimes, form favorable conditions for investments.

Manufacturing
The combination of well-educated, inexpensive workforce and free trade agreements calls for lucrative investments in labor intensive industries (i.e. automotive suppliers, textile industry etc).

Logistics
Moldova serves as an: ideal location for storage and distribution of goods to Central, Eastern European, CIS and Turkish markets; good connection by road, sea, river, narrow-gauge rail and broad-gauge rail network, as well as air.

 

Tax Incentives & Favorable Customs Regime

The favorable tax and customs regime applicable to GIFP Business Park residents can be summarized as follows:

  • 75% reduction of corporate income tax during the first 10 years of operation (currently 3% instead of 12%) and a 50% reduction for the remaining period until 2030;
  • exemption from excise taxes and import VAT;
  • exemption from import and export duties;
  • exemption of import duties into the rest of Moldova for goods that originate from Giurgiulesti International Free Port;
  • exemption of foreign employees from social insurance contributions;

Unlike in Moldovan free economic zones, where activities are typically limited to certain types of activities, the residents of GIFP Business Park have the right to undertake any activity that is ordinarily allowed in Moldova. Investors may also be 100% foreign owned, freely repatriate their profits and are not subject to revenue based administration fees or minimum investment obligations.

Quality of GIFP Business Park Infrastructure

GIFP Business Park is a green field development with newly constructed utility and road infrastructure. All land plots leased by residents benefit from road electricity, water, gas and fibre-optic telecommunication connections.

Low Operating Expenses

With an official average wage of only 370USD/300 EUR per month, Moldova’s multi-lingual labor force remains the most competitive labor force in Europe. Against this background Moldova has developed as a favorable location for companies active in labor intensive manufacturing, e.g. textile companies, automotive suppliers and call centers.

Apart from favorable payroll expenses, GIFP Business Park residents also benefit from relatively inexpensive utility charges:

Electricity — 1,40 MDL (0.11 $) per kWh for 6-10 kV; 1.38 MDL (0.12 $) per kWh for 0.4 kV
Gas — 4,8950 MDL (0.34 $) per m³ low pressure

Available Human Resources
GIFP Business Park close proximity to Romania (Galati 17km) and Ukraine (Reni 8km) attracts work force not only from Moldova but also from Romania and Ukraine.

Moldova (up to 60 km) – 100,000 population
Galati (Romania – 17 km) – 330,000 population
Reni region, Ukraine (8 km) – 41,000 population

Lease of Land

There is a selection of land available for long-term leases connected to electricity, gas, water, telecommunications, road infrastructure as well as in close proximity to rail and port infrastructure.

Lease of Warehouse, Open Storage and Production Facilities

A selection of types of warehouses, open storage halls or production facilities that are offered for short or long — term lease within GIFP Business Park. All areas are connected to basic necessary infrastructure such as electricity, gas, water, telecommunications, road infrastructure as well as in close proximity to rail and port infrastructure.

Lease of Offices

There are small and large office spaces available for short-to long-term leases within GIFP Business Park. All offices are connected to electricity, gas, water, telecommunications, road infrastructure as well as in close proximity to rail and port infrastructure.

Advisory Services

Upon request the management of GIFP Business Park will provide residents and potential residents with advisory services on issues ranging from the incorporation of a company in Moldova, permitting and other legal matters, project management, construction permitting/management, procurement issues as well as recruitment of human resources.


latest news
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28.06.2021
EBRD details investment in Giurgiuleşti International Free Port

The European Bank for Reconstruction and Development (EBRD) has published the details of its investment in Moldova’s Giurgiuleşti International Free Port (Giurgiuleşti Port), one of the country’s key strategic assets.

 

The EBRD’s support for the project started in 1995, when it provided a US$ 27.5 million financing package, comprising debt and equity, to Terminal S.A., a joint entity that had entered into a concession agreement with the government of Moldova to construct and operate Giurgiulești Port.

 

The EBRD’s engagement continued with a series of complex financial restructurings to help the project overcome a number of difficulties, including the withdrawal of original investors. Since 2014, the port operator now called Danube Logistics SRL, its Dutch parent and, indirectly, the EBRD have been subject to various actions.

 

To safeguard port operations and to safeguard and protect its financial interests, the EBRD became the sole ultimate legal owner of the operator of Giurgiulești Port on 7 May 2021. Through its acquisition, the EBRD aims to support the port’s continued operation and will seek to attract international investors to support and develop this key infrastructure asset.

 

The EBRD is owned by 69 countries – including Moldova – as well as the European Union and the European Investment Bank. With cumulative investments of €1.4 billion in the country to date, the EBRD is the largest institutional investor in Moldova.

 

Source: https://www.ebrd.com/news/2021/ebrd-details-investment-in-giurgiuleti-international-free-port.html

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19.05.2021
EBRD takes over operator of Giurgiulesti International Free Port

The European Bank for Reconstruction and Development (EBRD) acquired 100 per cent of the capital of the Danube Logistics Group of companies on 7 May 2021.

 

The EBRD thereby became the sole ultimate owner of Danube Logistics SRL, the operator of Giurgiulesti International Free Port. The change in ownership was registered by the relevant court in Moldova on 18 May 2021.

 

Through its acquisition, the EBRD aims to promote a continuation of the successful operation and development of Giurgiulesti International Free Port and will seek to attract international investors to further support and develop the port.

 

The EBRD has supported the construction and operation of Giurgiulesti International Free Port since 1995 and in 2013 replaced Credit Suisse as the primary economic beneficiary of the operation of the port following the refinancing of Danube Logistics’ outstanding loans by Credit Suisse.

 

As the port’s owner the EBRD expects the prompt fulfilment of all outstanding investment obligations stipulated in the Host Investment Agreement of 2004 signed between Danube Logistics, Bemol Refinery and Bemol Retail so as to benefit and boost the economic development of Moldova.

 

The EBRD is owned by 69 countries – including Moldova – as well as the European Union and the European Investment Bank. With cumulative investment of €1.4 billion in the country to date, the EBRD is the largest foreign investor in Moldova.

 

Source:  https://www.ebrd.com/news/2021/ebrd-takes-over-operator-of-giurgiulesti-international-free-port.html

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11.05.2021
CO2e EMISSIONS PER TON OF CARGO FURTHER DECREASED IN 2020

Danube Logistics presents already the fifth release of its annual Carbon Footprint Report developed in accordance with the Greenhouse Gas Protocol. As in previous years the Carbon Footprint Report sums up and analyses the CO2 and CO2 equivalent emissions (CO2e) resulting from last year’s business activities of Danube Logistics at the premises of Giurgiulesti International Free Port.

 

While in 2020 the total CO2e emissions increased by 5.4% compared to 2019, the CO2e emissions per ton of cargo transshipped further decreased by 3.8% compared to the previous year. This decrease reflects a more emission efficient use of port facilities and port equipment at increasing transshipment volumes and despite extensive use of fuel for transportation of material from dredging works. Overall, over the last five years the major drivers for the reduction of CO2e emissions per ton of cargo transshipped were the increased efficiency due to the volume increase and the replacement of conventional lighting with LED technology. Danube Logistics will continue to seek for further optimization potential in order to reduce CO2e emissions.

http://gifp.md/en/wp-content/files_mf/16207351512020_ReportonCarbonFootprint.pdf

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22.03.2021
EBRD seeks to safeguard operations of Moldova’s Giurgiulesti port

The European Bank for Reconstruction and Development (EBRD) is enforcing rights under its financing and security documents with regards to Danube Logistics Holding BV’s shareholding in Danube Logistics SRL (Danube Logistics), the operator of Giurgiulesti International Free Port in the Republic of Moldova.

 

The EBRD’s enforcement action, which commenced on 18 March 2021, aims to ensure the uninterrupted operations and ongoing expansion of Giurgiulesti International Free Port and to safeguard the EBRD’s financial interests in the project.

 

The EBRD is seeking to prevent any attempt at redirecting funds out of Danube Logistics as a result of the external administration imposed on the company, due to concerns that it will put the company in severe financial difficulties.

 

The action is in response to the decision by a Moldovan bailiff on 25 February to appoint an external administrator of the assets of Danube Logistics, following a disputed claim against one of Danube Logistics Holding BV’s ultimate beneficiaries.

 

The EBRD considers this appointment an interference with the running of the company, having a direct negative impact on its ability to continue to operate and repay its debts, as well as conflicting with EBRD’s legitimate interests as a lender holding security over the shares in Danube Logistics and as an economic beneficiary of those shares.

 

The EBRD has supported Danube Logistics’ development of Giurgiulesti International Free Port since 2005. As of today, the EBRD is Danube Logistics’ largest creditor as well as the main beneficiary of Danube Logistics Holding BV’s shareholding in Danube Logistics.

 

Giurgiulesti International Free Port is the Republic of Moldova’s only sea-river port located on the river Danube. On average, the port facilitates the international trade of Moldovan companies with more than 50 countries every year.

 

Source: https://www.ebrd.com/news/2021/ebrd-seeks-to-safeguard-operations-of-moldovas-giurgiulesti-port.html

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